Premarital agreement checklist: A guide for engaged couples

Marriage affects more than your personal relationship. It can also influence how you manage money and plan for the future.

For business owners and individuals with growing assets, the financial decisions that come with marriage can become even more complex. A premarital agreement—also known as a prenup—is one way to create greater financial clarity before saying I do.

What is a premarital agreement?

A premarital agreement is a legal contract created before marriage. In contrast, a postmarital agreement, or postnup, is created after marriage. Both outline how couples would handle certain assets, debts and financial responsibilities during the marriage or in the event of divorce or death.

Prenup checklist: Key topics to discuss

While some people find the idea of a prenup awkward, discussing expectations early may help reduce misunderstandings later. This checklist includes issues business owners and other engaged individuals may want to consider before speaking with an attorney or financial advisor about a premarital agreement.

Current finances

Both partners should make a detailed list of the assets and debts currently in their individual names and share this information openly. While this kind of transparency is generally required for prenuptial and postnuptial agreements, it also helps establish trust.

Each partner should share information about:

• Savings and investment accounts
• Real estate ownership
• Retirement accounts
• Loans and credit card debt
• Credit history and credit scores
• Tax obligations or back taxes
• Spousal or child support obligations
• Business ownership interests or partnership agreements
• Business liabilities or guarantees

Business ownership

If one or both partners own a business, business planning should be a central part of the premarital conversation.

Each party should discuss expectations around:

• Whether the business will remain separate property
• How future business growth or appreciation may be treated
• Whether marital assets or income will support the business
• Whether one or both spouses will eventually work in the business
• How business debts, liabilities and taxes will be handled

They may also want to consider the potential impact of divorce on business continuity and ownership. For example, what if one spouse leaves a stable job or makes other financial sacrifices to help grow the business? Any provisions related to the business should also align with existing business documents like operating and buy-sell agreements.

Money management

Couples should create a joint plan for handling income, expenses and financial decision-making during the marriage.

A plan should address issues like:

• Whether income and assets accumulated during marriage will be joint or separate
• Whether to maintain joint accounts, separate accounts or both
• How household finances and bill payments will be managed
• How large purchases will be handled
• How household expenses will be divided
• Whether one spouse will serve as the primary financial manager
• How frequently to review financial activity

Business owners may also want to discuss how irregular income or fluctuating cash flow could affect household finances and spending expectations.

A budget and financial goals

Engaged couples should make a realistic spending plan based on anticipated income, business cash flow and expenses.

They should discuss issues like:

• Expected income and how it may change over time
• Business reinvestment priorities
• Retirement planning goals
• Emergency savings goals
• Legacy and wealth transfer planning
• Long-term lifestyle expectations

If financial goals aren't aligned, couples should decide how they'll work together to support different priorities.

Debt and financial risk

Marriage can create shared financial exposure, especially when business ownership is involved.

Couples should share information about:

• Responsibility for existing debt
• Future borrowing expectations
• Comfort with entrepreneurial or investment risk
• Whether personal assets could be exposed to business liabilities
• Whether to file joint or separate tax returns
• How future tax obligations will be handled

They should also discuss attitudes toward aggressive tax strategies or deductions and disclose any unresolved tax issues.

Expectations for spousal support

Before getting married, couples should consider any thoughts and feelings surrounding spousal support or alimony, and whether the premarital agreement would establish terms that differ from state law.

They should address concerns like:

• Potential limitations on amount or duration
• Whether support terms would change if one spouse leaves the workforce
• How unpaid household or caregiving responsibilities may be viewed
• Whether one spouse's support of the business should factor into future financial arrangements

Premarital agreements generally can't address child custody, parenting arrangements or child-support obligations. However, they can address financial planning for current and future children, such as setting expectations around college savings.

Nonfinancial contributions

Financial contributions are only one part of a successful marriage and business partnership.

Couples should discuss expectations around:

• Raising children
• Managing the household
• Supporting a spouse's career or business
• Relocation for business opportunities
• Sacrifices made to support entrepreneurial goals

Many states recognize nonfinancial contributions during a marriage, so it's important to understand each person's expectations and perspectives.

How long the agreement should last

It's up to the couple to decide how long a premarital agreement should remain in effect.

They should discuss whether an agreement would:

• Remain in effect permanently
• Expire after a certain number of years
• Be revised after major life or business changes

An estate plan

Business owners should coordinate premarital agreements with broader estate and succession plans as soon as possible after marriage.

They should consider potential issues like:

• Existing children or family inheritance expectations
• Business succession plans
• Beneficiary designations for life insurance and retirement accounts
• Family heirlooms or legacy assets
• Long-term care or incapacity planning
• Whether the surviving spouse could maintain the same lifestyle after death

Couples should also clarify whether the premarital agreement would remain relevant after death and how marital status at the time of death could affect inheritance rights.

What makes a prenup or postnuptial agreement valid?

Generally, valid premarital and postnuptial agreements must be in writing, entered voluntarily by both parties and based on full financial disclosure. Courts may also refuse to enforce provisions they consider extremely unfair to one party.

Timing also matters. A prenup should be negotiated well before the wedding so both parties have adequate time to review its terms. Likewise, a postnuptial agreement is generally most appropriate when a marriage is stable—not during a marital crisis or immediately before a separation or divorce. Some couples also create a postnuptial agreement after a significant financial event, such as receiving a large inheritance.

How does a prenup protect a business?

A prenup can help clarify business ownership rights and determine how business valuations, buyout provisions and business debts will be handled.

For business owners who started a company before marriage, a premarital agreement may help document the business's value at the time of marriage and distinguish separate property from any marital interest that develops later. It can also reduce uncertainty and help support business continuity.

The bottom line

These are just some of the issues that should be addressed in a premarital or postmarital agreement. When it comes to effective communication, the phrase early and often is essential, and it's particularly relevant in the context of prenups and postnups.

Use this checklist as a tool to prepare for conversations with an attorney and financial advisor. They can help you create an agreement and evaluate how it may fit into your broader wealth planning strategy.